Managing non-PO (non-purchase order) invoices remains one of the more complex and time-consuming challenges for Accounts Payable teams. Unlike PO-based invoices, which typically follow a structured and predictable workflow, non-PO invoices often arrive with limited documentation, lack pre-approval, and require multiple layers of validation. Without a defined process, these invoices can create bottlenecks, increase the risk of error, and make financial oversight more difficult.
For organizations handling large volumes of vendor payments, gaining control over non-PO invoice processing is critical. The move from manual, paper-heavy processes to automated, structured workflows can significantly improve efficiency, accuracy, and compliance.
Challenges with Manual Invoice Handling
In traditional AP environments, non-PO invoices are typically routed manually via email for coding, approval, and entry into the financial system. This approach often leads to:
- Delays in approvals and payments due to unclear routing or unavailability of approvers
- Data entry errors from manual keying
- Duplicate payments or missed invoices due to lack of centralized tracking
- Limited visibility into invoice status or spending trends
- Challenges with audit readiness due to fragmented documentation
These issues are amplified in organizations with multiple departments or locations, where each team may have its own way of handling incoming invoices.
Bringing Structure to an Unstructured Process
Automating non-PO invoice processing begins with digitization—converting paper or emailed invoices into structured digital records. From there, key invoice details such as vendor, date, amount, and GL codes can be extracted and validated automatically. With proper business rules in place, invoices can then be routed to the appropriate approver based on cost centre, department, or other criteria.
Approvals are tracked and recorded within the system, ensuring transparency at each step. Once approved, invoices can be posted directly into the organization’s ERP or accounting system, significantly reducing manual effort and ensuring timely payment.
Benefits of AP Automation for Non-PO Invoices
Implementing an automated workflow for non-PO invoices allows AP departments to:
- Standardize approval processes across the organization
- Improve processing times by reducing manual tracking
- Ensure compliance with internal controls and audit requirements
- Gain visibility into invoice status, bottlenecks, and spending patterns
- Reduce late payments and duplicate entries
In short, automation brings consistency and control to an area of AP that is often unpredictable and prone to error.
A Practical Approach to Implementation
Not all organizations are starting from the same place. Some may have partial digital workflows; others may still rely heavily on email and spreadsheets.
Working with a partner experienced in AP process improvement can help reduce complexity and ensure the solution reflects existing business rules and compliance needs. Octacom supports organizations in this process by providing secure invoice capture, structured approval workflows, and system integrations that fit existing financial infrastructure.
With the right tools and approach, AP teams can shift from reactive troubleshooting to proactive financial management—reducing risk, improving relationships with vendors, and freeing up time for more strategic work.
Octacom is a SOC 2, Type II Audited enterprise software and services company focused on document and data automation solutions, including automated data capture. Founded in 1976, Octacom specializes in accounts payable automation and automated invoice processing, among other digital / automated business process outsourcing services.
If your organization is looking to learn more about our solutions and services, please contact us and we would be glad to help.
